ProShares Seeks SEC Approval for ETF Tracking Crypto Index

ProShares, a major investment firm, has submitted an application to the U.S. Securities and Exchange Commission(SEC) seeking approval to launch a new crypto ETF.

The ETF will track the CoinDesk 20 Index, which measures the performance of the top 20 cryptocurrencies by market capitalisation.

According to the SEC filing, the new fund, called ProShares CoinDesk Crypto 20 ETF, will give investors exposure to leading cryptocurrencies such as Bitcoin, Ethereum, XRP, and Solana.

The index leaves out stablecoins, memecoins, and wrapped tokens, focusing instead on large, actively traded cryptocurrencies such as Bitcoin, Ethereum, and XRP, with Solana also among the top assets.

ProShares Plans Derivative-Based Crypto ETF

ProShares said the ETF won’t directly hold cryptocurrencies but will instead gain exposure through swaps, derivatives, and similar financial instruments tied to the assets in the index.

This investment structure follows regulatory rules and provides investors with a path to access the performance of the crypto market.

A similar trend is happening in the market as 21Shares has recently updated its S-1 filing for a spot Dogecoin ETF, and it’s awaiting SEC approval.

The fund plans to use a Cayman Island subsidiary to handle certain derivative contracts, but this will be limited to no more than 25% of its total assets. 

ProShare Expands Crypto Offerings Amid Rising Institutional Demand

Following the launch of its popular Bitcoin futures ETF in 2021, the company continues to add more crypto investment products, showing growing institutional interest in diversified crypto funds to lower the risk of individual assets.

The CoinDesk 20 Index updates every quarter and currently includes popular cryptocurrencies like Bitcoin, Ethereum, XRP, Solana, Cardano, and Avalanche.

This reflects a broader trend, as REX-Osprey recently filed for several ETFs linked to altcoins such as ADA, HYPE, XLM, and SUI.

If it is given the green light, the ProShares CoinDesk Crypto 20 ETF would be one of the first diversified crypto ETFs in the United States, and as a result, traditional investors would be able to have exposure to a variety of digital assets in one fund, possibly speeding the institutional adoption of crypto.